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Cleaner production and application in the Vietnam petroleum industry

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Cleaner Production (CP) was fi rst introduced in Vietnam in 1995 by the United Nations Environmental Programme (UNEP). According to UNEP, CP is the continuous application of an integrated preventive environmental strategy to processes, products, and services in order to increase effi ciency and reduce risks to humans and the environment. The demonstration case studies have fi gured out that CP can give the opportunities to reduce from 10 - 15% of energy and input material consumption in production. CP brings about not only economic benefit but also environmental one to help improve production efficiency of both big and small companies. This paper introduces the concepts, methodology and benefits of Cleaner Production, its application and practice in the Vietnam National Oil and Gas Group.

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1 Cleaner Production Concept

Cleaner Production (CP) was fi rst introduced in

Vietnam by the United Nations Environmental Programme

(UNEP) in 1995 According to UNEP, CP is the continuous

application of an integrated preventive environmental

strategy to processes, products, and services in order

to improve ecological productivity and reduce risks to

humans and the environment

Accordingly, CP for products includes reducing

negative impacts during the whole life cycle of a product,

from design to its disposal For production processes, CP

includes material and energy conservation, toxic material

elimination and reduction of the quantity and toxicity

of all wastes at source For services, CP is to incorporate

environmental concerns into designing and delivering

services

The objective of CP is to avoid pollution by utiliszing

resources, materials and energy with the highest

efficiency Thus, a certain additional proportion of

materials and energy which ought to be discarded will be

converted into fi nished products Therefore, CP not only

brings economic benefi ts to companies, but also helps

protect the environment

Basically, CP is similar to “Waste Minimisation”,

“Pollution Prevention” or “Green Productivity” However,

the approach and methodology of each concept are

diff erent

CP brings economic benefi ts and reduces waste

through pollution prevention measures, which are

diff erent from end-of-pipe waste treatment measures With these benefi ts, CP is an important step for companies

to establish and apply the Environmental Management System ISO 14000

2 Cleaner Production Methodology

To implement CP, we have to conduct CP assessment

CP assessment is a series of activities conducted to identify options that can bring effi ciency to production The CP assessment often focuses on answering the following questions:

- Where waste and emissions are generated;

- Why waste and emissions are generated;

- How waste and emissions can be minimised and eliminated in the company

CP assessment is a systematic approach to investigate the existing production process and identify opportunities

to improve the process or products

A CP assessment process is divided into 6 steps: (1) Getting started; (2) Analysing process steps; (3) Generating

CP options; (4) Selecting CP options; (5) Implementing CP options; (6) Maintaining CP These steps are divided into

18 specifi c tasks (Figure 1)

CP implementation is a journey rather than a destination, when a CP assessment is fi nished, other assessments will be started to improve current conditions

or continue with other selected options CP does not specify limits but requires continuous improvement from

a company

CLEANER PRODUCTION AND APPLICATION IN THE VIETNAM

PETROLEUM INDUSTRY

MSc Nguyen Van Tuan, MSc Nguyen Lan Huong

Vietnam Oil and Gas Group

Email: tuanv@pvn.vn

Summary

Cleaner Production (CP) was fi rst introduced in Vietnam in 1995 by the United Nations Environmental Programme (UNEP) According

to UNEP, CP is the continuous application of an integrated preventive environmental strategy to processes, products, and services in order to increase effi ciency and reduce risks to humans and the environment The demonstration case studies have fi gured out that CP can give the opportunities to reduce from 10 - 15% of energy and input material consumption in production CP brings about not only economic benefi t but also environmental one to help improve production effi ciency of both big and small companies.

This paper introduces the concepts, methodology and benefi ts of Cleaner Production, its application and practice in the Vietnam National Oil and Gas Group.

Key words: Cleaner Production, CP, waste minimisation, emissions, initiatives.

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PETROLEUM SAFETY & ENVIRONMENT

3 Cleaner Production benefi ts

CP brings not only economic benefi ts but also

environmental one, and is of great signifi cance for a

company; especially the industrial companies, whether

small or big The case studies have showed that most

companies have the potential to reduce from 10 - 15% of

energy and input material consumption

Benefi ts brought by CP include:

- Improved production effi ciency;

- More effi cient utiliszation of raw materials, water

and energy;

- Recovery of valuable by-products;

- Less pollution;

- Lower costs for waste disposal and waste water

treatment;

- Improved image for companies;

- Improved safety and occupational health

4 Cleaner Production application in Vietnam

On 22 September 1999, the Minister of Science,

Technology and Environment (now the Minister of

Science and Technology), on behalf of the Government of

Vietnam, signed the International Declaration on Cleaner

Production

In view of the economic and environmental benefi ts

that CP brings about, on 7 September 2009, the Prime

Minister signed Decision No 1419/QD-TTg approving the

Cleaner Production Strategy in the Vietnamese Industry

to the year of 2020; in which sets the targets by 2015:

- 50% of the industrial companies are aware of the

CP benefi ts in the industrial production;

- 25% of the industrial companies apply CP; the CP

applied industrial companies save from 5 - 8% of energy,

fuel and raw material consumption per unit of product

And by the year of 2020:

- 90% of industrial companies are aware of the CP

benefi ts in the industrial production;

- 50% of the industrial companies apply CP; the CP

applied companies save from 8 - 13% of energy, fuel and

raw material consumption per unit of product;

- 90% of the medium and large companies have

established a specialised body responsible for CP

Step 1: Getting Started

• Task 1: Establish a CP team

• Task2: List technological steps and redefi ne norms

• Task 3: Identify and select most wasteful operations

Step 2: Analysing production process steps

• Task 4: Establish a technological diagram for the main audit part

• Task 5: Make a material/energy balance

• Task 6: Defi ne costs of waste stream

• Task 7: Analyse causes

Step 3: Developing CP opportunities

• Task 8: Establish CP opportunities

• Task 9: Select the most feasible opportunities

Step 4: Selecting CP options

• Task 10: Evaluate technical feasibility

• Task 11: Evaluate economic feasibility

• Task 12: Evaluate environmental aspect

• Task 13: Select options for implementation

Step 5: Implementing CP options

• Task14: Prepare for implementation

• Task 15: Implement CP options

• Task 16: Monitor and evaluate results

Step 6: Maintaining CP

• Task 17: Maintain CP options

• Task 18: Select the next process step for new CP assessment

To implement the Prime Minister’s Decision No 1419/QD-TTg, the Ministry of Industry and Trade has promulgated directives to guide the provincial Departments of Industry and Trade and the industrial companies to develop and implement the Action

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Programme on Cleaner Production in order to achieve

the targets of the Strategy for Cleaner Production

approved by the Prime Minister According to the

statistics on the Ministry of Industry and Trade’s

website on Cleaner Production, many provinces and

cities in Vietnam have been promoting CP application

in their industrial sectors In Hanoi, 54 enterprises have

applied CP, of which 16 enterprises have reduced the

fuel and raw material consumption per unit of product

by over 5%

CP application is bringing practical benefi ts to various

industrial sectors such as brewery industry, tea processing,

leather and footwear, paper and pulp; plastic recycling,

steel industry; and building materials, etc

5 Cleaner production application in the Vietnam

pe-troleum industry

Thoroughly aware of the economic and environmental

benefi ts that CP brings about, the Vietnam Oil and

Gas Group (PVN), in implementing the guidelines of

the Ministry of Industry and Trade, has developed and

approved the Action Plan for implementing the Cleaner

Production Strategy in Industry toward the year of 2020

by Decision No 9702/QD-DKVN dated 31 December 2013

PVN’s Action Plan has set the targets:

By the year of 2015:

- 50% of the enterprises under PVN having the CP

potential shall be aware of the CP benefi ts;

- 25% of the enterprises under PVN having the CP

potential shall apply CP in their production and shall save

the energy and material consumption from 3 - 5%;

- 25% of the enterprises under PVN shall have CP

staff ;

- 70% of the CP responsible staff of PVN will be

trained and capable to disseminate, guide, consult and

support the CP application in their enterprises

And from 2016 to 2020:

- 100 % of the enterprises under PVN having the CP

potential shall be aware of the CP benefi ts;

- 50% of the enterprises under PVN having the CP

potential shall apply CP in their production and shall save

the energy and material consumption from 5 - 8%;

- 50% of the enterprises under PVN shall have CP

staff ;

- 100 % of the CP responsible staff of PVN will be trained and capable to disseminate, guide, consult and support the CP application in their enterprises

PVN’s CP Action Plan also fi gures out 6 specifi c tasks and pinpoint the measures to successfully implement the tasks and the entire plan

However, since the CP Action Plan was approved

by the PVN’s President and CEO, the implementation has been behind the planned schedule Up to now, one of the Action Plan’s most important tasks - basic and advanced training for CP staff from PVN affi liates

- has not been started yet Besides objective reasons and the capability of the unit which was appointed

as the implementing body of the Plan, there are also subjective reasons which come from some of the PVN functional divisions, as well as the ineffi cient internal co-ordination

Although the basic and advanced training courses to provide a more systematic and professional methodology for CP have not really been launched yet, many industrial enterprises under PVN, such as Binh Son Refi ning and Petrochemical Company Limited (BSR), Petrovietnam Fertilizer and Chemicals Corporation (PVFCCo), and PetroVietnam Camau Fertilizer Company Limited (PVCFC) have been very interested in saving raw materials and energy consumption, as well as, reducing emissions into the environment through technical innovations and systematic application of initiatives Every year, engineers of these enterprises have generated hundreds

of initiatives, bringing about the savings of billion VND In

2012, only 5 industrial enterprises under PVN generated and applied 319 initiatives, bringing about the savings of

394 billion VND in the fi rst year of application In 2013,

302 initiatives in PVN’s enterprises saved in total 1,703 billion VND in the fi rst year of application Many initiatives already applied in PVN’s affi liates are in fact a type of cleaner production practice in the Vietnam petroleum industry

While the survey data for CP assessment of each enterprise under PVN is unavailable, the number of measures registered and the initiatives recognised and applied every year suggest that the potential for CP application inside the PVN’s industrial enterprises is huge The CP application, as demonstrated above, obviously will not only bring practical economic and environmental benefi ts but also help improve the image for a strong PVN brand among the community Thus, the CP application is

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PETROLEUM SAFETY & ENVIRONMENT

an objective demand inside PVN and its affi liates, and also

a requirement from the Government and the Ministry of

Industry and Trade to successfully implement Decision

No 1419/QD-TTg approved by the Prime Minister What

remains is awareness

In the coming period, the Vietnam National Oil and

Gas Group is to determine to boost the implementation

of its CP Action Plan, considering it a measure among

others to be resolutely deployed by PVN to reduce costs

and improve the effi ciency of production and business

in the context of unpredictable crude oil price decline;

and a contribution to the environmental protection

and sustainable development of PVN as set out by its

Development Strategy

References

1 Vietnam Cleaner Production Centre - Hanoi

University of Science and Technology Cleaner Production guidelines for SMEs.

2 Prime Minister Decision approving the “Cleaner Production Strategy in Industry toward the year of 2020”

Decision No 1419/QD-TTg dated 7 September 2009

3 Vietnam Oil and Gas Group Decision approving and issuing the Action Plan for implementing the Cleaner Production Strategy in Industry toward the year of 2020 of the Vietnam Oil and Gas Group Decision No

9702/QD-DKVN dated 31 December 2013

4 Ministry of Industry and Trade http://www.sxsh.vn

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